New $100,000 H-1B Fee Threatens OPT Path for Indian Students

(UNITED STATES) A new U.S. policy imposing a one-time $100,000 H-1B fee on certain new petitions is reshaping how students, universities, and employers think about the OPT pathway, particularly for Indian students who have long used OPT as a bridge from campus to long-term work. The policy, effective for petitions filed starting September 21, 2025, for a 12-month period that may be extended, applies to employers seeking to bring H-1B workers from outside the country. Crucially, it does not apply to F-1 students already in the United States who change status from OPT or STEM OPT to H-1B without leaving. Still, lawyers, campus advisors, and recruiters warn the ripple effects will be felt across recruiting plans, travel choices, and cost-benefit calculations for the next graduating class.

At the center of the debate is a simple tension: OPT itself remains intact, but employer willingness to sponsor new H-1B workers may shift when a six-figure surcharge enters the picture for cases processed abroad. Because H-1B sponsorship costs are paid by employers, the fee raises questions about which candidates will get offers that include long-term sponsorship and whether small and mid-sized firms will step back. That uncertainty is especially acute for Indian students, many of whom pursue STEM degrees and rely on the extended 36-month STEM OPT period to gain experience while seeking H-1B status.

Policy details matter in this moment. The new fee applies only to select “new” H-1B petitions that require a worker to enter the United States. By contrast, students who stay on U.S. soil and file a change of status from F-1 OPT or STEM OPT to H-1B are not covered by the fee. If a student travels abroad and uses consular processing to obtain an H-1B visa stamp, however, the surcharge may apply. That single difference—staying in the country versus leaving for visa issuance—now carries a major cost risk for employers and, by extension, for students holding offers.

Policy Changes Overview

The core elements of the rule:

• One-time fee: $100,000 H-1B fee on qualifying new H-1B petitions.
• Effective date: Petitions filed on or after September 21, 2025.
• Duration: 12 months (officials may extend the program).
• Scope: Targets cases where the beneficiary is abroad and needs admission to the United States as an H-1B worker.
• Exclusions: Does not apply to F-1 students already in the U.S. who change status to H-1B without departing.

This narrow scope is critical: OPT and STEM OPT students who remain in the U.S. can obtain H-1B status without triggering the surcharge. But traveling abroad and seeking an H-1B visa via consular processing may cause the employer’s filing to trigger the fee.

Early behavioral effects

• Employers are revising offer letters and advising new hires to remain in the country during change-of-status processing.
• Recruiters expect companies to time filings to let employees continue working on OPT/STEM OPT while H-1B change-of-status is pending.
• Routine international trips between job offer and Day 1 employment now carry heightened risk.

OPT’s role remains, but employer behavior may change

The OPT program still allows eligible F-1 students to work in the U.S. in fields related to their studies for up to 12 months, with an extra 24 months for STEM graduates (total 36 months for STEM). The paperwork and eligibility framework remain unchanged.

The friction comes from employer economics and risk tolerance:

• The fee is paid by employers, so their willingness to sponsor may decline for cases that require consular processing.
• Smaller and mid-sized firms may be less likely to absorb a six-figure surcharge.
• Larger firms may continue to sponsor but with stricter internal conditions to avoid consular cases.

“H-1B is becoming harder and more expensive, and OPT risks turning into a stopgap rather than a reliable path,” — Ritesh Jain, cofounder of LaunchEd.

This shift could alter career expectations and financial calculations—especially for Indian families who budget for U.S. tuition with the expectation that OPT leads to longer-term employment.

Impact on Applicants and Employers

Key practical takeaways:

• Stay in the U.S. while a change of status to H-1B is filed to avoid the $100,000 fee.
• Travel planning becomes central: trips that trigger consular processing could impose the surcharge on the employer and change hiring decisions.
• Employers pay H-1B filing fees; students do not. The employer’s calculus will determine who receives sponsorship.

Major effects to anticipate:

• Recruiters and employers may:
  • Prefer candidates with prior U.S. experience or proven stability.
  • Limit sponsorship to roles with clear business justification.
  • Steer hires toward in-country filings and away from travel during OPT.
• Universities and career services may:
  • Urge earlier internship searches and stronger portfolios.
  • Discourage casual international travel during sensitive filing windows.
  • Offer workshops and employer outreach focused on sponsorship-ready students.

Analysis from VisaVerge.com suggests more OPT participants will avoid travel and lean into domestic change-of-status strategies, especially during cap seasons. That will make coordination between university international centers and employer immigration teams more important.

Practical planning considerations

Students and advisors are adjusting timing and expectations:

• A spring graduate with a summer job may now postpone a quick trip home if it risks turning an in-country H-1B filing into a consular case.
• A student on STEM OPT considering a family event abroad may delay travel until after change-of-status approval, or structure filings to avoid triggering consular processing.
• Employers may update policies to:
  • Reduce travel during critical windows.
  • Offer remote work alternatives.
  • Provide clearer guidance in offer letters about sponsorship plans and travel expectations.

Universities with large Indian student populations (in engineering, CS, data science, business analytics) are already retooling support:

• Career fairs emphasizing large employers known to sponsor.
• Alumni mentoring focused on minimizing risky travel during OPT.
• Workshops on how international trips affect H-1B cases during the fee period.

The policy also affects personal decisions. Students may delay weddings, medical visits, or family reunions if travel could force consular processing later. Counselors report more questions about whether brief visits could have outsized career and financial consequences.

Steps students, families, and universities can take

Practical actions to reduce risk and preserve the OPT-to-H-1B pathway:

• Focus early on internships and co-ops that align with target roles to improve sponsorship prospects.
• Prioritize employers with established sponsorship programs (large tech firms, multinationals).
• Coordinate with employers to remain in the U.S. during the H-1B change-of-status process; limit travel until status is secure.
• Track policy updates and possible legal challenges that might change timelines or scope.
• Build interdisciplinary skills to stand out in hiring (e.g., CS + healthcare, finance, manufacturing).
• Explore alternatives: global roles with U.S.-linked firms, academic and research positions, or extraordinary ability routes.

Universities and advisors can support these actions by:

• Expanding employer outreach and sharing best practices for timing and travel.
• Offering early workshops for first- and second-year students.
• Promoting backup destinations and alternative career pathways if U.S. sponsorship becomes infeasible.

Employers should consider:

• Stronger documentation in offer letters about sponsorship and change-of-status preferences.
• Checklists for international hires that make cost implications clear.
• Formal policies on travel during critical filing periods.

Practical planning for Indian students on OPT

Planning will center on four themes:

1. Timing: Align with filing windows and maintain valid OPT/STEM OPT status.
2. Travel: Avoid trips that could force consular processing during sensitive periods.
3. Employer choice: Target organizations with systems and budgets to handle sponsorship complexities.
4. Communication: Discuss start dates, filing plans, and flexibility with employers early.

Psychological shift: Many students may treat OPT as valuable but potentially temporary—leading to more conservative financial and career decisions, including considering roles abroad or at multinationals with robust sponsorship systems.

Immigration attorneys expect:

• More change-of-status filings.
• Fewer international trips during OPT.
• Closer coordination with corporate HR on start dates and travel needs.

Universities are adapting communications to ensure students understand:

• What OPT allows.
• How travel affects H-1B cases under the new rule.
• The importance of involving employers early in planning.

Employers will likely formalize decisions and policies:

• Offer letters may explicitly state sponsorship plans and travel expectations.
• HR teams and hiring managers will be briefed on when travel restrictions or in-country filing preferences apply.

What could change

• Legal challenges or future administrations may alter the program’s scope or duration.
• For now, the working reality is:
  • Fee begins September 21, 2025, for 12 months (possible extension).
  • Applies to certain new H-1B petitions for workers outside the U.S.
  • Does not apply to in-country change-of-status filings for students on OPT or STEM OPT who remain in the U.S.

If most students on OPT stay in the U.S. for change-of-status filings, many cases could avoid the $100,000 charge. If significant numbers require consular processing, employers may reconsider offers and costs will rise.

For authoritative guidance, employers and students can review the U.S. government’s H-1B overview at: USCIS H-1B Specialty Occupations. The core H-1B eligibility framework remains: a qualifying job, bachelor’s degree (or equivalent) in a specialty field, and a valid employer-employee relationship.

Final takeaway

The policy does not rewrite OPT rules, but it raises the stakes of certain choices. A student on OPT or STEM OPT can still pursue a U.S. career path, but the $100,000 H-1B fee increases the cost of mistakes, poor timing, or unexpected travel. Careful planning, early employer coordination, and thoughtful employer selection will be key to keeping the OPT-to-H-1B bridge usable for many students—even as the immigration policy landscape grows more complex.